Wall Street’s tech war

from NorthJersey.com:

>>Wall Street’s tech war

As the exchange industry evolves, NYSE Euronext has begun transferring its computer operations from a Brooklyn facility into a 400,000-square-foot data center it has been building along Route 17 in Mahwah.

"NYSE is looking to move the epicenter of U.S. capital markets from Broad Street to Mahwah," said Kevin McPartland, a senior analyst with the Tabb Group, a New York consulting and researching firm. McPartland estimates 8.5 billion shares are traded on U.S. equity markets every day.

The company plans for the data center to become mostly operational by the end of the third quarter, said Steve Rubinow, NYSE Euronext’s chief information officer.

...

"Direct Edge is co-operating with the regulators and other exchanges to effect changes to prevent a repeat of last Thursday,’’ said William O’Brien, Direct Edge’s chief executive officer, in a statement last week to The Record. "The meetings have been extremely constructive and I believe the outcome will be a positive for the market and for investors."

Demand for space

The presence of Direct Edge’s matching engines has helped drive demand for so-called co-location space at a Secaucus data center owned by the data-center operator Equinix, said John Knuff, its general manager.

Direct Edge is among more than 12 exchanges and trading venues with matching engines at Equinix’s two data centers in Secaucus, he said. The variety of trading venues and the high-frequency strategies driven by computer algorithms have contributed to demand for server space near matching engines.

"That’s definitely fueling the co-location business for all providers," Knuff said.